A Salute to Service: How Do VA Loans Work?

By:

If you have served in the military and meet the requirements below, you may qualify for a VA Home Loan! Over 22 million veterans have reached the “American Dream” of homeownership since the creation of the US Department of Veterans Affairs, which provides patient care and federal benefits to veterans and their dependents.

In 1944, through the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights signed into law by President Franklin D. Roosevelt, provides veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.

VA guaranteed loans are made by private lenders such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. However, many do not know all of the details and do not take advantage. You can use these benefit to purchase a home or condo, build new construction, refinance an existing home loan, or even make improvements.

You earned it, so use it!

Who Qualifies for a VA Home Loan?

To be eligible for a VA Loan, veterans, as well as active duty service members, National Guard members, and reservists must meet the basic service requirements set forth by the Department of Veterans Affairs. Spouses of military members who died while on active duty or have a service-connected disability may also be eligible.

A Certificate of Eligibility (COE) is one of the most important 1st steps when applying for a VA Home Loan. This verifies that you are eligibleto the lender. More than 25 million veterans and service personnel are eligible for VA financing. Requirements include:

Serve 90 consecutive days during wartime

Serve 181 consecutive days during peacetime

Have more than 6 years in the National Guard or Reserves

Are the spouse of a service member who has died in the line of duty or as the result of a service-related disability

If you meet all the qualifications for this Home loan you should take advantage of the opportunity!

Top 5 Benefits of a VA Home Loan

There are many benefits to getting your VA Home loan, here are 5 of them:

0% down payment (doesn’t get much better than that!)

“PMI” or Primary Mortgage Insurance is not required! (Most other loans with down payments less than 20% require PMI which increases your monthly payment)

Lower credit score requirements

Sellers can pay all of a buyer’s loan-related closing costs and up to 4% in concessions in some cases.

VA Loans continue to have the lowest average interest rates of all loan types.

We are so glad that this home loan is available to our veterans.

For more information or to find out if you qualify, be sure to reach out to one of our agents. You can call (502) 797-4761 to get in touch. We salute you!